Fitch upgrades D.R. Horton to BBB-

Fitch Ratings said it upgraded the ratings of D.R. Horton, Inc., including the issuer default rating, to BBB- from BB+.

The outlook was revised to stable from positive.

Fitch said the upgrade to investment-grade reflects the company's successful execution of its business model, resulting in a steady capital structure through the cycle, including net debt to capitalization levels consistently below 45% (net debt to capitalization ratio was 23% as of June 30).

D.R. Horton’s strong interest coverage ratio (9.2 times for the latest 12 months [LTM] ending June 30) and solid liquidity position also support an investment-grade rating, the agency added.

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